XRP currently trades at $2.95, showcasing a remarkable growth of 725% over the past three years. A substantial portion of this rise occurred in the last year, bolstered by the election of President Trump and the resolution of a lengthy lawsuit against Ripple, a fintech firm utilizing the XRP blockchain for payment facilitation in businesses and financial institutions.
Geoff Kendrick from Standard Chartered predicts continued gains, suggesting that XRP may play an increasingly pivotal role in global financial systems and that the introduction of XRP exchange-traded funds (ETFs) could attract further investor interest. Kendrick estimates that XRP could hit $12.25 by 2029, a projection indicating a 315% increase from its current value. This forecast implies an impressive annual return of 43%.
However, some analysts propose a more tempered outlook. Morningstar experts anticipate the broader cryptocurrency market will experience a growth rate of 9% annually through 2034, closely aligned with historical long-term returns in the global stock market. While XRP, currently the third-largest cryptocurrency, is expected to outperform many assets, skepticism remains regarding Kendrick’s bullish predictions.
A more conservative projection suggests that if XRP achieves a 20% annual return over the next five years, it could rise to approximately $7.35 by late 2030. This outlook hinges critically on the potential approval of spot XRP ETFs and increased adoption by businesses and financial institutions.
Ripple CEO Brad Garlinghouse emphasizes the potential for substantial adoption of XRP within the next five years. Ripple’s cross-border payment solutions utilize XRP as a bridge currency, thereby facilitating faster and cheaper international transactions compared to traditional wire transfers through the SWIFT network. Garlinghouse projects that XRP could capture 14% of the current cross-border transaction volume managed by SWIFT. Yet, skepticism lingers about this estimate, as the majority of Ripple’s banking clients do not actively use the On-Demand Liquidity (ODL) service that relies on XRP.
Ripple has introduced a stablecoin, Ripple USD, to mitigate the volatility of XRP, but it faces stiff competition from established players like USDC and Tether. If more businesses and financial institutions begin utilizing the XRP blockchain for payments, demand for XRP could increase, potentially leading to price appreciation. Nonetheless, the volatility of XRP, alongside the relative obscurity of Ripple USD compared to other stablecoins, raises questions about the solidity of this investment narrative.
In addition, the approval of spot XRP ETFs presents a promising avenue for generating demand among both retail and institutional investors. With at least eight asset managers submitting applications to track the spot price of XRP, the Securities and Exchange Commission (SEC) is expected to make decisions on these applications by late October 2025. Bloomberg’s Eric Balchunas estimates a 95% chance of approval for these products, which could simplify access for investors and reduce associated trading costs.
The success of Bitcoin following its ETF approvals serves as a potential indicator; Bitcoin’s price surged 140% since the launch of spot Bitcoin ETFs, including the iShares Bitcoin Trust, which became the most successful ETF launch in history by inflows.
Despite optimism surrounding future price growth, potential investors must cautiously consider the risks inherent in XRP. The cryptocurrency has a history of volatility, experiencing significant price drops even after substantial gains. Therefore, individuals averse to large price fluctuations may want to reevaluate their interest in XRP.
